New consumer protection legislation takes a step in the right direction with the banning of door-to-door electricity retailers

TORONTO, June 3, 2015 /CNW/ - The Province's newly tabled Strengthening Consumer Protection & Electricity System Oversight Act is a step in the right direction in protecting consumer rights through the ban of door-to-door electricity retailers, according to the Electricity Distributors Association (EDA), representing local electrical utilities.

"Local utilities deal with countless complaints from customers who feel they have been misled at the door," says EDA Chair Raymond Tracey. "As a group, we have long advocated that the government take action on eliminating fixed rate retailer contracts for residential customers. It is evident that the government has heard from customers and is taking action on a number of our recommendations, such as the banning of door-to-door retailers; stricter parameters around contract verification; a longer cooling-off period; and higher penalties."

As the frontline of Ontario's electricity system, distributors deliver power to about five million customers - and do so responsibly and reliably. The EDA estimates that approximately 300,000 of these are currently supplied with electricity at their homes under the terms of a retail contract – rather than directly through their local utility. Some of these consumers have been led to believe that a retail contract will help them avoid future higher prices – but these 'fixed rate' contracts are typically for the cost of power and do not protect against increases in other charges such as global adjustments.

EDA estimates that a provincial ban on residential electricity retailers could save consumers approximately $120 million annually. For a customer with a five-year contract, the savings would approximate $400 annually or over $2,000 for the term of the contract.

About the EDA

The Electricity Distributors Association (EDA) is the voice of Ontario's local electricity distributors, the publicly and privately owned companies that safely and reliably deliver electricity to millions of Ontario homes, businesses and public institutions.

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Organization Profile

The Electricity Distributors Association is the voice of Ontario's local electricity distributors, the publicly and privately owned companies that safely and reliably deliver electricity to nearly five million Ontario homes, businesses and public institutions....